Saturday, August 30, 2008

Tips for Credit Improvement and Repair (Real Estate Broker in Northridge, CA)

1. Probably the most obvious and also the most important is always pay on time. Keep in mind that once you are more than 30 days late on a credit account, there will be a derogatory on the credit report.

2. Have a variety of credit types extended to you. For example, credit cards, car loan, student loan, mortgage loan, etc. These are all different types of loans as seen by the credit bureau.

3. Since length of credit files helps your score, keep you oldest accounts open with a zero balance. Do not close these accounts because it will drop your score.

4. Don't max out your credit lines. Keep your credit card balances at less than 30% of your credit limit. After you have been paying on time for 6 months, you can request a credit limit increase. Hopefully they will give you an increase without running your credit.

5. There is a common misconception that paying off collection accounts will help your score, however this is not necessarily true. A collection will show "paid collection" and will still have a negative effect on the credit score. You will get more bang for your buck by saving or paying down revolving balances.

When working with my clients, I help them prepare for the buying process. Wheather just getting starting to build credit or many derogatory items which need attention, I will help with the process. I understand that it takes sometimes over a year to buy a house and will help each step of the way.

Wednesday, August 27, 2008

Buyers are Picking Up Bank Owned Properties

Multiple Offers on Bank Owned and Foreclosures

It seems like the people who were on the sidelines are now coming out and buying. A recent foreclosure was listed at $230K a little below market value and received 18 offers within a week. The accepted price, however, was $290K. This goes to show how this strategy of pricing low works well for generating activity and ultimately a higher price for the seller.

For the buyers, it seems like those who continue to wait and expect a further worsening of the housing market may be left behind. The fact that multiple offers are coming in on several of the homes now shows that the competition is fierce here in the Los Angeles and San Fernando Valley area.

Tuesday, August 26, 2008

Short Sale or Pre-foreclosure



A pre foreclosure is when the lender agrees to accept something less than the full amount of the payoff to avert foreclosure. Most lenders have discovered that it is cheaper to have a short sale or other activity rather than letting the property come back as an asset. This is especially true when the loan amount is much greater than the value of the property.


Keep in mind that when the property becomes REO (real estate owned), the lender now is responsible for the gardening, utilities, taxes, insurance, etc. For this reason, lenders are slow to foreclose on homeowners who are upside down on their mortgages.



For those who are having a hard time making payments and meeting their obligations, a short sale can be done. To have the best chance of success with a short sale, one needs to understand and do the following:



  1. As a seller, you need to be aware that you will need to provide full documentation to the lender when you request their approval of the short sale. This typically includes, tax returnes, paystubs, W2's, bank statements, and an explanation of hardship. The lender is looking to see if there a true hardship. This information may be compared to the origional application for the loan.

  2. Always seek advice from a Certified Public Accountant or CPA before agreeing to do a short sale. Also, it is recommended that you seek legal advise prior to doing a short sale. This is very important because your real estate agent or broker is cannot legally advise in those areas.

  3. Always use a real estate agent that has had past success in getting short sales approved. While there are many short sales on the market, there are very few closed short sales.

  4. Use the proper forms for listing and purchase offers on short sale or notice of default properties

  5. Market the property agressively and get feedback from people on the price. Let the lender know what you are doing to market the property. The lender wants to see that you are trying to get the best price possible.

  6. Last but definately not least, BE FLEXIBLE. Don't be surprised if there are several issues that the lender comes up with. Remember, if you don't bend, you will break.

Wednesday, August 6, 2008

First Time Homebuyer Seminars

HOMEBUYER EDUCATION SEMINAR - 2008 SCHEDULE

Saturday, February 2, 2008
Saturday, March 15, 2008
Saturday, April 19, 2008
Saturday, June 21, 2008
Saturday, July 19, 2008
Saturday, August 16, 2008 (Spanish session)
Saturday, September 13, 2008
Saturday, October 18, 2008
Saturday, November 15, 2008

Reserve a seat by calling the recorded reservation line at (323) 890-7190. Make sure you speak clearly and state your name, address, and phone number.

SIGN-IN IS PROMPTLY AT 8:00 A.M. YOU WILL NEED A VALID DRIVER'S LICENSE OR PICTURE ID FOR REGISTRATION. ALL SEMINARS ARE FROM 9:00 A.M TO 4:30 P.M.

Parking Fee: $8.00

Lunch: Not included, HIGHLY RECOMMEND YOU BRING A BAG LUNCH

Location:

Los Angeles City Department of Water and Power (DWP) Building
111 N. Hope Street
Los Angeles, CA 90012
Level "A" Auditorium
(Cross Street is West 1st Street)

Meet with participating lenders and real estate brokers and ask questions during the break and lunch hour at the seminar. You must remain for the completion of the eight-hour educational seminar in order to receive the Certificate of Completion. A valid driver's license or picture ID must be presented at the time the Certificate is received.